Volvo Cars reported a 10% year-on-year decline in vehicle sales for the three months through February, selling 156,965 cars amid challenging market conditions.
The company attributed the drop to tougher global conditions, including tariff pressures and regulatory changes—particularly in the United States—as well as an extended New Year holiday period in China that reduced demand.
Despite the overall decline, sales of fully electric vehicles increased by 18%, signalling growing consumer interest in zero-emission models.
“We are pleased to see steady growth in the sales of our fully electric cars,” the company said, noting that electric vehicles remain a strategic focus even as broader market conditions weigh on performance.
Shares of Volvo Cars rose about 1% in early trading, with the company scheduled to release its first-quarter earnings on April 29.